REPORT TITLE:
Camp. spending; committees


DESCRIPTION:
Amends election law to add a new definition for "ballot issue
committee".  Redefines "committee" to exempt any organization
which raises or expends funds for the sole purpose of production
and dissemination of informational or educational advertising.
Amends other portions of the election law. (CD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 1
STATE OF HAWAII                                            C.D. 1
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ELECTIONS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 11-191, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      1.  By adding a new definition to be appropriately inserted
 
 4 and to read as follows:
 
 5      ""Ballot issue committee" means a committee as defined in
 
 6 this section which has the exclusive purpose of making or
 
 7 accepting contributions or expenditures for or against any issue
 
 8 appearing on the ballot at the next applicable election."
 
 9      2.  By amending the definition of "committee" to read as
 
10 follows:
 
11      ""Committee" means:
 
12      (1)  Any organization, association, or individual that
 
13           accepts or makes a contribution or makes an expenditure
 
14           for or against any:
 
15           (A)  Candidate;
 
16           (B)  Individual who files for nomination at a later
 
17                date and becomes a candidate; or
 
18           (C)  Party;
 
19           with or without the authorization of the candidate,
 
20           individual, or party.  In addition, the term
 

 
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 1           "committee" means any organization, association, or
 
 2           individual who accepts or makes a contribution or makes
 
 3           an expenditure for or against any question or issue
 
 4           appearing on the ballot at the next applicable
 
 5           election; or
 
 6      (2)  Any organization, association, or individual that
 
 7           raises or holds money or anything of value for a
 
 8           political purpose, with or without the consent or
 
 9           knowledge of any:
 
10           (A)  Candidate;
 
11           (B)  Individual who files for nomination at a later
 
12                date and becomes a candidate; or
 
13           (C)  Party; and
 
14           subsequently contributes money or anything of value to,
 
15           or makes expenditures on behalf of, the candidate,
 
16           individual, or party.
 
17     [(3)] Notwithstanding any of the foregoing, the term
 
18           "committee" shall not include any individual making a
 
19           contribution or expenditure of the individual's own
 
20           funds or anything of value that the individual
 
21           originally acquired for the individual's own use and
 
22           not for the purpose of evading any provision of this
 
23           subpart[; or
 
24      (4)  Any committee as defined in paragraph (1) that accepts
 

 
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 1           or makes contributions or makes expenditures in
 
 2           aggregate of more than $1,000 in an election to
 
 3           influence the nomination and election of individuals to
 
 4           public office or the outcome of ballot questions or
 
 5           issues, shall register with the commission and file
 
 6           reports as required by this chapter.], or any
 
 7           organization, which raises or expends funds for the
 
 8           sole purpose of the production and dissemination of
 
 9           informational or educational advertising."
 
10      SECTION 2.  Section 11-193, Hawaii Revised Statutes, is
 
11 amended by amending subsection (a) to read as follows:
 
12      "(a)  The duties of the commission under this subpart are:
 
13      (1)  To develop and adopt reporting forms required by this
 
14           subpart;
 
15      (2)  To adopt and publish a manual for all candidates and
 
16           committees, describing the requirements of this
 
17           subpart, including uniform and simple methods of
 
18           recordkeeping;
 
19      (3)  To preserve all reports required by this subpart for at
 
20           least ten years from the date of receipt;
 
21      (4)  To permit the inspection, copying, or duplicating of
 

 
 
 
 
 
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 1           any report required by this subpart pursuant to rules
 
 2           adopted by the commission; provided that no information
 
 3           or copies from the reports shall be sold or used by any
 
 4           person for the purpose of soliciting contributions or
 
 5           for any commercial purpose;
 
 6      (5)  To ascertain whether any candidate, committee, or party
 
 7           has failed to file a report required by this subpart or
 
 8           has filed a substantially defective or deficient
 
 9           report, and to notify these persons by first class mail
 
10           that their failure to file or filing of a substantially
 
11           defective or deficient report must be corrected and
 
12           explained.  The correction or explanation shall be
 
13           submitted in writing to the commission not later than
 
14           4:30 p.m. on the fifth day after notification of the
 
15           failure to file or deficiency has been mailed to these
 
16           persons.  The commission shall publish in the
 
17           newspaper, and on its website, the names of all
 
18           candidates, committees, and parties who have failed to
 
19           file a report or to correct their deficiency within the
 
20           time allowed by the commission.  Failure to file or
 
21           correct a report when due, as required by this subpart,
 
22           shall result in a penalty of $50.  Failure to respond
 
23           after a newspaper notification or website publication
 

 
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 1           shall result in an additional penalty of $50 for each
 
 2           day a report remains overdue or uncorrected.  All
 
 3           penalties collected under this section shall be
 
 4           deposited in the Hawaii election campaign fund;
 
 5      (6)  To hold public hearings;
 
 6      (7)  To investigate and hold hearings for receiving evidence
 
 7           of any violations;
 
 8      (8)  To adopt a code of fair campaign practices as a part of
 
 9           its rules;
 
10      (9)  To establish rules pursuant to chapter 91;
 
11     (10)  To request the initiation of prosecution for the
 
12           violation of this subpart pursuant to section 11-229;
 
13     (11)  To administer and monitor the distribution of public
 
14           funds under this subpart;
 
15     (12)  To suggest accounting methods for candidates, parties,
 
16           and committees, as the commission may deem advisable,
 
17           in connection with reports and records required by this
 
18           subpart;
 
19     (13)  To employ or contract, without regard to chapters 76
 
20           and 77 and section 28-8.3, and, at pleasure, to dismiss
 
21           persons it finds necessary for the performance of its
 
22           functions, including a full-time executive director,
 

 
 
 
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 1           and to fix their compensation;
 
 2     (14)  To do random audits, field investigations, as
 
 3           necessary; 
 
 4     (15)  To file for injunctive relief when indicated;
 
 5     (16)  To censure any candidate who fails to comply with the
 
 6           code of fair campaign practices; and
 
 7     (17)  To render advisory opinions upon the request of any
 
 8           candidate, candidate committee, noncandidate committee,
 
 9           or other person or entity subject to this chapter, as
 
10           to whether the facts and circumstances of a particular
 
11           case constitute or will constitute a violation of the
 
12           campaign spending laws.  If no advisory opinion is
 
13           rendered within ninety days after all information
 
14           necessary to issue an opinion has been obtained, it
 
15           shall be deemed that an advisory opinion was rendered
 
16           and that the facts and circumstances of that particular
 
17           case do not constitute a violation of the campaign
 
18           spending laws.  The opinion rendered or deemed
 
19           rendered, until amended or revoked, shall be binding on
 
20           the commission in any subsequent charges concerning the
 
21           candidate, candidate committee, noncandidate committee,
 
22           or other person or entity subject to this chapter, who
 
23           sought the opinion and acted in reliance on it in good
 

 
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 1           faith, unless material facts were omitted or misstated
 
 2           by the persons in the request for an advisory opinion."
 
 3      SECTION 3.  Section 11-194, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "11-194  Registration.(a)  Each candidate, committee, or
 
 6 party shall file an organizational report as set forth in section
 
 7 11-196, or section 11-196.5 as applicable, within ten days from
 
 8 the date a candidate or candidate committee receives any
 
 9 contributions or makes any expenditures, the aggregate amount of
 
10 which is more than $100, or, within ten days from the date a
 
11 noncandidate committee receives any contributions or makes any
 
12 expenditures, the aggregate amount of which is more than $1,000.
 
13      (b)  Committees that form within ten days of an election and
 
14 expend in the aggregate more than $1,000 shall register and fully
 
15 disclose the expenditure by 4:30 p.m. on the last calendar day
 
16 prior to the expenditure.
 
17      (c)  Each candidate who [is certified to be a candidate by
 
18 the] files nomination papers for office with the chief election
 
19 officer or county clerk [by way of the "write-in" ballot] shall
 
20 file an organizational report within five days of [being
 
21 certified as a candidate.] filing.
 
22      [(d)  Each candidate shall re-register for the new election
 
23 period.  A noncandidate committee need not re-register for a new
 

 
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 1 election period, but shall affirm the accuracy of the information
 
 2 on the organizational report as set forth in section 11-196.5.]"
 
 3      SECTION 4.  Section 11-195, Hawaii Revised Statutes, is
 
 4 amended by amending subsection (a) to read as follows:
 
 5      "(a)  All reports required to be filed under this subpart by
 
 6 a candidate or those committees directly associated with the
 
 7 candidate's candidacy shall be certified by the candidate[.] and
 
 8 treasurer.  Reports required to be filed under this subpart by a
 
 9 party or committee that supports more than one candidate shall be
 
10 certified by a person authorized to sign the reports.  All
 
11 reports required to be filed under this subpart shall be open for
 
12 public inspection in the office of the commission."
 
13      SECTION 5.  Section 11-199, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "11-199  Campaign contributions, generally.(a)  All
 
16 monetary contributions shall be promptly deposited in a
 
17 depository institution, as defined by section 412:1-109, duly
 
18 authorized to do business in the State, such as a bank, savings
 
19 bank, savings and loan association, depository financial services
 
20 loan company, credit union, intra-Pacific bank, or similar
 
21 financial institution, the deposits or accounts of which are
 
22 insured by the Federal Deposit Insurance Corporation, or the
 
23 national credit union administration in the name of the
 

 
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 1 candidate, committee, or party, whichever is applicable.
 
 2      (b)  Each candidate, committee, or party shall establish and
 
 3 maintain an itemized record showing [the]:
 
 4      (1)  The amount of each monetary contribution[, the];
 
 5      (2)  The description and value of each nonmonetary
 
 6           contribution[,]; and [the]
 
 7      (3)  The name and address of each donor making a
 
 8           contribution of more than $25 in value.
 
 9      [(c)  Each candidate and campaign treasurer shall report the
 
10 amount and date of deposit of each contribution and the name and
 
11 address of each donor who makes a contribution whose aggregate
 
12 value is more than $100.
 
13      (d)] (c)  No candidate, committee, or party shall accept a
 
14 contribution of more than $100 in cash from a single person
 
15 without issuing a receipt to the donor and keeping a record of
 
16 the transaction.
 
17      [(e)] (d)  Each committee and party shall disclose the
 
18 original source of all earmarked funds, the ultimate recipient of
 
19 the earmarked funds, and the fact that the funds are earmarked."
 
20      SECTION 6.  Section 11-204, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "11-204  Campaign contributions; limits as to persons.(a)
 
23 No person, other than a candidate for the candidate's own
 

 
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 1 campaign, or any other entity shall make contributions to:
 
 2      (1)  A candidate seeking nomination or election to a two-
 
 3           year office or to the candidate's committee in an
 
 4           aggregate amount greater than $2,000 during an election
 
 5           period; [and]
 
 6      (2)  A candidate seeking nomination or election to a four-
 
 7           year statewide office or to the candidate's committee
 
 8           in an aggregate amount greater than $6,000 during an
 
 9           election period; and
 
10      (3)  A candidate seeking nomination or election to a four-
 
11           year nonstatewide office or to the candidate's
 
12           committee in an aggregate amount greater than $4,000
 
13           during an election period.
 
14      These limits shall not apply to a loan made to a candidate
 
15 by a financial institution in the ordinary course of business.
 
16      (b)  No person or any other entity shall make contributions
 
17 to a noncandidate committee, in an aggregate amount greater than
 
18 $1,000 in an election; except that in the case of a corporation
 
19 or company using funds from its own treasury, there shall be no
 
20 limit on contributions or expenditures to the corporation or
 
21 company noncandidate committee.
 
22      (c)  A [candidate] candidate's immediate family, in making
 
23 [a contribution] contributions to the candidate's campaign, shall
 

 
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 1 be exempt from the above limitation, but shall be limited in the
 
 2 aggregate to $50,000 in any election period.  The aggregate
 
 3 amount of $50,000 shall include any loans made for campaign
 
 4 purposes to the candidate from the candidate's immediate family.
 
 5      (d)  A contribution by a dependent minor shall be reported
 
 6 in the name of the minor but shall be counted against the
 
 7 contribution of the minor's parent or guardian.
 
 8      (e)  Any candidate [or], candidate's committee, or committee
 
 9 [who] that receives in the aggregate more than the applicable
 
10 limits set forth in this section in any primary, initial special,
 
11 special, or general election from a person, shall be required to
 
12 transfer an amount equal to any excess over the limits
 
13 established in this section to the Hawaii election campaign fund
 
14 within thirty days of receipt [by a candidate or candidate's
 
15 committee,] of the contribution, and in any event, no later than
 
16 thirty days upon the receipt by a candidate, [or] candidate's
 
17 committee, or committee, of notification from the commission.  A
 
18 candidate [or], candidate's committee, or committee who complies
 
19 with this subsection prior to the initiation of prosecution shall
 
20 not be subject to any penalty under section 11-228.
 
21      (f)  All payments made by a person whose contributions or
 
22 expenditure activity is financed, maintained, or controlled by
 
23 any corporation, labor organization, association, political
 

 
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 1 party, or any other person or committee, including any parent,
 
 2 subsidiary, branch, division, department, or local unit of the
 
 3 corporation, labor organization, association, political party, or
 
 4 any other person, or by any group of those persons shall be
 
 5 considered to be made by a single person.
 
 6      (g)  A contribution made by two or more corporations shall
 
 7 be treated as one person when such corporations:
 
 8      (1)  Share the majority of members of their boards of
 
 9           directors;
 
10      (2)  Share two or more corporate officers;
 
11      (3)  Are owned or controlled by the same majority
 
12           shareholder or shareholders; or
 
13      (4)  Are in a parent-subsidiary relationship.
 
14      (h)  An individual and any general partnership in which the
 
15 individual is a partner, or an individual and any corporation in
 
16 which the individual owns a controlling interest, shall be
 
17 treated as one person.
 
18      (i)  No committee which supports or opposes a candidate for
 
19 public office shall have as officers individuals who serve as
 
20 officers on any other committee which supports or opposes the
 
21 same candidate.  No such committee shall act in concert with, or
 
22 solicit or make contributions on behalf of, any other committee.
 
23      (j)  [No contributions may be made to a noncandidate
 

 
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 1 committee from a corporation or other organization unless the
 
 2 noncandidate committee has been in existence continuously, as
 
 3 shown on the records of the campaign spending commission, for at
 
 4 least twelve months prior to the next primary election.
 
 5      (k)]  No contributions or expenditures shall be made to or
 
 6 on behalf of a candidate or committee by a foreign national or
 
 7 foreign corporation, including a domestic subsidiary of a foreign
 
 8 corporation, a domestic corporation that is owned by a foreign
 
 9 national, or a local subsidiary where administrative control is
 
10 retained by the foreign corporation, and in the same manner
 
11 prohibited under 2 United States Code section 441e and 11 Code of
 
12 Federal Regulations 110.4(a) and 110.9(a), as amended.  No
 
13 foreign-owned domestic corporation shall make contributions
 
14 where:
 
15      (1)  Foreign national individuals participate in election-
 
16           related activities such as decisions concerning the
 
17           making of contributions or the administration of a
 
18           political committee; or
 
19      (2)  The contribution funds are not domestically-derived.
 
20      [(l)] (k)  No person or any other entity shall make
 
21 contributions to a political party in an aggregate amount greater
 
22 than $50,000 in any two-year election period.
 
23      (l)  Except for subsection (j), this section shall not apply
 

 
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 1 to ballot issue committees."
 
 2      SECTION 7.  Section 11-212, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "11-212  Preliminary reports.(a)  [Each candidate,
 
 5 authorized person in the case of a party, or campaign treasurer
 
 6 in the case of a candidate committee,] The candidate committee of
 
 7 each candidate whose name will appear on the ballot in the
 
 8 immediately succeeding election shall file a preliminary report
 
 9 with the commission or appropriate county clerk's office[,].
 
10 Preliminary reports shall be filed on forms provided by the
 
11 commission no later than 4:30 p.m. on the [twenty-fifth and
 
12 tenth] following dates:
 
13      (1)  July thirtieth of the year of the primary election;
 
14      (2)  Ten calendar [day] days prior to each primary and
 
15           initial special election[,]; and [the tenth]
 
16      (3)  Ten calendar [day] days prior to a special or general
 
17           election.
 
18 Each report shall be certified pursuant to section 11-195 and
 
19 shall contain the following information which shall be current
 
20 through the thirtieth calendar day prior to the filing of the
 
21 report filed on the thirtieth of July and fifth calendar day
 
22 prior to the filing of [a] other preliminary [report:] reports:
 
23      (1)  The aggregate sum of all contributions and other
 

 
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 1           campaign receipts received;
 
 2      (2)  The amount and date of deposit of the contribution and
 
 3           the name and address of each donor who contributes an
 
 4           aggregate of more than $100 during an election period,
 
 5           which has not previously been reported;
 
 6      (3)  The amount and date of deposit of each contribution and
 
 7           the name, address, employer, and occupation of each
 
 8           donor who contributes an aggregate of $1,000 or more
 
 9           during an election period, which has not previously
 
10           been reported;
 
11      (4)  All expenditures made, incurred, or authorized by or
 
12           for a candidate, including the name and address of each
 
13           payee and the amount, date, and purpose of each
 
14           expenditure; and
 
15      (5)  A current statement of the balance on hand or deficit.
 
16      (b)  Each noncandidate committee shall file a preliminary
 
17 report with the commission, on forms provided by the commission,
 
18 no later than 4:30 p.m. on the tenth calendar day prior to each
 
19 primary election and the tenth calendar day prior to a special or
 
20 general election.  Each report shall be certified pursuant to
 
21 section 11-195 and shall contain the following information, which
 
22 shall be current through the fifth calendar day prior to the
 
23 filing of a preliminary report:
 

 
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 1      (1)  The aggregate sum of all contributions and other
 
 2           campaign receipts received;
 
 3      (2)  The amount and date of deposit of the contribution and
 
 4           the name, address, employer, and occupation of each
 
 5           donor who contributes an aggregate of $100 or more
 
 6           during an election period, which has not previously
 
 7           been reported;
 
 8      (3)  The amount and date of each disbursement or
 
 9           contribution made to a candidate, party, organization,
 
10           or committee, including the name and address of each
 
11           payee, which has not previously been reported;
 
12      (4)  The amount and date of each expenditure made or
 
13           incurred by the committee for or against any candidate,
 
14           ballot issue, or on behalf of another committee, which
 
15           has not previously been reported; and
 
16      (5)  A current statement of the balance on hand.
 
17      (c)  A candidate, party, or committee whose aggregate
 
18 contributions [or] and aggregate expenditures for the reporting
 
19 period each total $2,000 or less may file a short form report
 
20 with the commission or appropriate county clerk's office in lieu
 
21 of the reports required by this section and section 11-213.
 
22      (d)  Notwithstanding this section and section 11-213, a
 
23 candidate, party, or committee whose aggregate contributions [or]
 

 
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 1 and aggregate expenditures for the election period total $1,000
 
 2 or less, need not file a preliminary and final primary report, a
 
 3 preliminary and final general report, or a special election
 
 4 report, but shall file only a final election period report."
 
 5      SECTION 8.  Section 11-213, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "11-213  Final and supplemental reports.(a)  Primary and
 
 8 initial special election.  Each candidate whether or not
 
 9 successful in a primary or initial special election, authorized
 
10 person in the case of a party, or campaign treasurer in the case
 
11 of a committee, shall file a final primary report certified
 
12 pursuant to section 11-195 with the commission on forms provided
 
13 by the commission no later than 4:30 p.m. on the twentieth
 
14 calendar day after a primary or initial special election.  The
 
15 report shall include the following information which shall be
 
16 current through the day of the primary election:
 
17      (1)  A statement of the total contributions and campaign
 
18           receipts received;
 
19      (2)  The amount and date of deposit of each contribution and
 
20           the name and address of each donor who contributes an
 
21           aggregate of more than $100 during an election period,
 
22           which has not previously been reported;
 
23      (3)  The amount and date of deposit of each contribution and
 

 
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 1           the name, address, employer, and occupation of each
 
 2           donor who contributes an aggregate of $1,000 or more
 
 3           during an election period, which has not previously
 
 4           been reported;
 
 5      (4)  A statement of all expenditures made, incurred, or
 
 6           authorized by or for a candidate including the name and
 
 7           address of each payee and the amount, date, and purpose
 
 8           of each expenditure; and
 
 9      (5)  The cash balance and a statement of surplus or deficit.
 
10      (b)  Each noncandidate committee shall file a final primary
 
11 report, certified pursuant to section 11-195, with the commission
 
12 on forms provided by the commission no later than 4:30 p.m. on
 
13 the twentieth calendar day after a primary election.  The report
 
14 shall include the following information, which shall be current
 
15 through the day of the primary election:
 
16      (1)  A statement of the total contributions and campaign
 
17           receipts received;
 
18      (2)  The amount and date of deposit of each contribution and
 
19           the name, address, employer, and occupation of each
 
20           donor who contributes an aggregate of more than $100
 
21           during an election, which has not previously been
 
22           reported;
 
23      (3)  The amount and date of each disbursement or
 

 
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 1           contribution made to a candidate, party, organization,
 
 2           or committee, including the name and address of each
 
 3           payee, which has not previously been reported;
 
 4      (4)  The amount and date of each expenditure made or
 
 5           incurred by the committee for or against any candidate,
 
 6           ballot issue, or on behalf of another committee, which
 
 7           has not previously been reported; and
 
 8      (5)  A current statement of the balance on hand.
 
 9      (c)  General, special general, special election or election
 
10 period.  Each candidate, authorized person in the case of a
 
11 party, or campaign treasurer in the case of a committee shall
 
12 file a final election period general report with the commission
 
13 on forms provided by the commission no later than 4:30 p.m. on
 
14 the thirtieth calendar day after a general, special general, or
 
15 special election.  The final election period report shall be
 
16 certified pursuant to section 11-195, shall report all items
 
17 prescribed in subsection (a) or (b) for noncandidate committees,
 
18 and shall be current through the day of the general election.  A
 
19 candidate who is unsuccessful in a primary or special primary
 
20 election shall file a final election period report.
 
21      (d)  Termination.  A candidate, party, or committee may
 
22 terminate registration with the commission with no surplus or no
 
23 deficit.  A termination report approved by the commission shall
 

 
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 1 include information on the disposition of any funds, which has
 
 2 not previously been reported.
 
 3      (e)  Deficit.  In the event of a deficit the candidate,
 
 4 authorized person in the case of a party, or campaign treasurer
 
 5 in the case of a committee shall, every six months until the
 
 6 deficit is eliminated, file supplemental reports covering all
 
 7 items prescribed in subsection (a) or subsection (b) in the case
 
 8 of noncandidate committees.  The first report shall be due no
 
 9 later than 4:30 p.m. on the thirtieth day after the last day of
 
10 the election year.
 
11      (f)  Surplus.  In the event of a surplus the candidate,
 
12 authorized person in the case of a party, or campaign treasurer
 
13 in the case of a committee, shall:
 
14      (1)  Maintain the cash surplus in a financial depository;
 
15           and
 
16      (2)  Every six months, until the candidate files to be on
 
17           the ballot with the state office of elections, or in
 
18           the case of a party or committee until they participate
 
19           in an election again, file supplemental reports
 
20           detailing all items prescribed in subsection (a) or in
 
21           the case of a noncandidate committee until they
 
22           participate in an election again, or file supplemental
 
23           reports detailing all items prescribed in subsection
 

 
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 1           (b).
 
 2      The first report shall be due not later than 4:30 p.m. on
 
 3 the thirtieth calendar day after the last day of the election
 
 4 year.
 
 5      [(g)  Short form reporting.  A candidate, party, or
 
 6 committee who receives no contributions, makes no expenditures,
 
 7 and has a deficit or surplus of $2,000 or less in any prescribed
 
 8 reporting period shall nevertheless file preliminary, final, and
 
 9 supplemental reports on the respective dates pursuant to this
 
10 subpart.  The reports may be filed on a short form as provided by
 
11 the commission.
 
12      (h)] (g)  All supplemental reports required by this section
 
13 shall be filed until a candidate files to be on the ballot with
 
14 the state elections office.  Each party or noncandidate committee
 
15 shall file a supplemental report for the respective reporting
 
16 period during a nonelection year.  In an election year, each
 
17 party and noncandidate committee shall file reports as prescribed
 
18 in this section and section 11-212 for the primary and general
 
19 election."
 
20      SECTION 9.  Section 11-215, Hawaii Revised Statutes, is
 
21 amended by amending subsections (a) and (b) to read as follows:
 
22      "(a)  [To the extent authorized by law, all] All
 
23 advertisements [authorized by a candidate or a candidate's
 

 
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 1 committee] shall contain the name and address of the candidate,
 
 2 committee, [or] party, or person paying for the advertisement.
 
 3 If an advertisement is not authorized by a candidate or a
 
 4 candidate's committee, the advertisement shall contain the name
 
 5 and address of the person paying for the advertisement.
 
 6      (b)  In addition to subsection (a), [and to the extent
 
 7 authorized by law,] no [person] candidate or committee shall
 
 8 cause or submit any advertisement in support of a candidate [or],
 
 9 against a candidate's opponent, or with regard to a ballot issue
 
10 to be published, broadcast, televised, or otherwise circulated
 
11 and distributed except under the following conditions:
 
12      (1)  The advertisement shall contain a notice in a prominent
 
13           location that the literature or advertisement is
 
14           published, broadcast, televised, or circulated with the
 
15           approval and authority of the candidate, provided that
 
16           in the event that the literature or advertisement is
 
17           paid for by a candidate [or], committee directly
 
18           associated with a candidate, or ballot issue committee,
 
19           the notice of approval and authority need not be
 
20           included; or
 
21      (2)  The advertisement shall contain a notice in a prominent
 
22           location that the literature or advertisement is
 
23           published, broadcast, televised, or circulated without
 

 
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 1           the approval and authority of the candidate."
 
 2      SECTION 10.  Section 11-228, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "11-228  Administrative fines; relief.(a)  In the
 
 5 performance of its required duties, the commission may render a
 
 6 decision or issue an order affecting any person violating any
 
 7 provision of this subpart [other than in sections 11-193(a)(5)
 
 8 and 11-215,] that shall provide for the assessment of an
 
 9 administrative fine in the manner prescribed as follows:
 
10      (1)  If a natural person, an amount not to exceed $1,000 for
 
11           each occurrence or an amount equivalent to three times
 
12           the amount of an unlawful contribution or expenditure,
 
13           whichever is greater; or
 
14      (2)  If a corporation, organization, association, or labor
 
15           union, it shall be punished by a fine not exceeding
 
16           $1,000 for each occurrence; and
 
17      (3)  Whenever a corporation, organization, association, or
 
18           labor union violates this subpart, the violation shall
 
19           be deemed to be also that of the individual directors,
 
20           officers, or agents of the corporation, organization,
 
21           association, or labor union, who have knowingly
 
22           authorized, ordered, or done any of the acts
 
23           constituting the violation.
 

 
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 1      (b)  Any order for the assessment of an administrative fine
 
 2 may not be issued against a person without providing the person
 
 3 written notice and an opportunity to be heard at a hearing
 
 4 conducted under chapter 91.  A person may waive these rights by
 
 5 written stipulation or consent.  If an administrative fine is
 
 6 imposed upon a candidate, the commission may order that the fine,
 
 7 or any portion, be paid from the candidate's personal funds.
 
 8      (c)  If an order issued by the commission is not complied
 
 9 with by the person to whom it is directed, the first circuit
 
10 court, upon application of the commission, shall issue an order
 
11 requiring the person to comply with the commission's order.
 
12 Failure to obey such a court order shall be punished as contempt.
 
13      (d)  Any administrative fine collected by the commission
 
14 shall be deposited in the Hawaii election campaign fund.
 
15      (e)  Any person or the commission may sue for injunctive
 
16 relief to compel compliance with this subpart.
 
17      (f)  The provisions of this section shall not be construed
 
18 to prohibit prosecution under any appropriate provision of the
 
19 Hawaii Penal Code or section 11-229.
 
20      (g)  The provisions of this section shall not apply to any
 
21 person who, prior to the commencement of proceedings under this
 
22 section, has paid or agreed to pay the penalties prescribed by
 
23 sections 11-193(a)(5) and 11-215(b)(3)."
 

 
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 1      SECTION 11.  Section 11-229, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "11-229  Criminal prosecution.(a)  Any [individual]
 
 4 person who knowingly, intentionally, or recklessly violates any
 
 5 provision of this subpart[, other than sections 11-193(a)(5) and
 
 6 11-215,] shall be guilty of a misdemeanor.  A person who is
 
 7 convicted under this section shall be disqualified from holding
 
 8 elective public office for a period of four years from the date
 
 9 of conviction.
 
10      (b)  For purposes of prosecution for violation of this
 
11 subpart, the offices of the attorney general and the prosecuting
 
12 attorney of the respective counties shall be deemed to have
 
13 concurrent jurisdiction to be exercised as follows:
 
14      (1)  Prosecution shall commence with a written request from
 
15           the commission or upon the issuance of an order of the
 
16           court; provided that prosecution may commence prior to
 
17           any proceeding initiated by the commission or final
 
18           determination;
 
19      (2)  In the case of state offices, parties, or issues, the
 
20           attorney general or the prosecuting attorney for the
 
21           city and county of Honolulu shall prosecute any
 
22           violation; and
 
23      (3)  In the case of all other offices, parties, or issues,
 

 
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 1           the attorney general or the prosecuting attorney for
 
 2           the respective county shall prosecute any violation.
 
 3      In the commission's choice of prosecuting agency, it shall
 
 4 be guided by whether there will be any conflicting interest
 
 5 between the agency and its appointive authority.
 
 6      (c)  The court shall give priority to the expeditious
 
 7 processing of suits under this section.
 
 8      (d)  Prosecution for violation of any provision of this
 
 9 subpart shall not be commenced after five years have elapsed from
 
10 the date of the violation or date of filing of the report
 
11 covering the period in which the violation occurred, whichever is
 
12 later.
 
13      (e)  The provisions of this section shall not apply to any
 
14 person who, prior to the commencement of proceedings under this
 
15 section, has paid or agreed to pay the penalties prescribed by
 
16 sections 11-193(a)(5) and 11-215(b)(3)."
 
17      SECTION 12.  Act 27, Special Session Laws of Hawaii 1995, as
 
18 amended by Act 13, Session Laws of Hawaii 1996, is amended by
 
19 amending section 15 to read as follows:
 
20      "SECTION 15.  This Act shall take effect on July 1, 1995[;]
 
21 provided that on June 30, 1999, this Act shall be repealed and
 
22 sections 11-1, 11-2, 11-5, [11-191, 11-194, 11-195, 11-216,] 12-
 
23 8, and 26-1, Hawaii Revised Statutes, shall be reenacted in the
 

 
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 1 form in which they read on the day before the effective date of
 
 2 this Act."
 
 3      SECTION 13.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 14.  This Act shall take effect on June 29, 1999.